08 May 2009
Hi, When i was doing statutory audit, i observed that, the share cap & reserves were totally eroded by the brought f/w & currenty year losses in the balance sheet. My queries are; a) Is the statutory auditor required to qualify the report? b) Is there any other statutory implications on this balance sheet?
10 May 2009
a)No need to qualify the audit report unless the financial statements are not true and fair. b)There would be reporting of losses under a particular clause of CARO, 2003 report which is a part of auditor's report.
CAclubindia
